India and China – two of Guyana’s biggest and longest development partners have been invited to throw in bids in the South American nation’s ongoing 2022 licensing round.
A total of 14 deepwater and shallow-water blocks are up for grabs with 25 billion barrels of recoverable resources at stake.
In an interview with China’s state-run CGTN published on Jan. 16, Ali spoke of the decades-long collaboration between the two nations and added “We encourage China to participate in the public process…the bidding process.”
In India’s case, the Guyana Head of State alluded to there being a potential “government-to-government” partnership between them.
According to a Jan 12. Reuters article, Ali was asked whether Guyana would offer blocks to Indian companies through direct negotiations.
Ali said, “Apart from the auction, we are discussing government-to-government partnerships in a number of areas including exploration.” The Guyanese President had said that the government set aside a few blocks for this purpose but no other details were given. Barbados, he said, had embarked on a similar initiative.
The sizes of the blocks on auction range from 1,000-3,000 square kilometres (sq. km.).
Successful bidders will have to pay a minimum signature bonus of US$10 million for each of the 11 shallow water blocks in play. They would pay a minimum of US$20 million for each of the three deepwater blocks up for grabs in the ultra-deep Area C.
The signature bonus is also part of a slew of other terms which characterise the new fiscal regime for Production Sharing Agreements (PSA). The other terms include a 10 % royalty, a 50/50 profit oil sharing between government and contractor, a 10% corporation tax and a 65% cost recovery ceiling.
Click here to get more details on the Licensing Round: https://oilnow.gy/glr2022/
